Amendment 69 will tax residents of Colorado in exchange for the cost of health insurance.

However, there is no guarantee the services provided would meet the needs of the consumers.

That is the message delivered by Freddie Gaudet, Outreach and Coalition manager for Coloradans for Coloradans.

Gaudet was the guest speaker at a meeting on Amendment 69 held at the Sterling Public Library community room hosted by the Logan County Economic Development Corporation.

'We're voting on whether we think this is the solution," Gaudet said.

He said the health care system does need to be fixed. The question is if Amendment 69 is the cure. Gaudet told the small number in attendance that the proposal is written such that if it doesn't work in the first year, the Colorado legislature can pass "fixer bills" to remedy the problems. However, if the amendment does not work, it will take an additional amendment to have Amendment 69 removed from the Colorado constitution. One of the questions asked about the proposal is how much is enough. The ballot question asks voters to approve an additional $25 billion in taxes for Colorado residents.

However, the elected board has the authority to raise taxes outside of the oversight of TABOR.

"The problem is we're a state, not a country," he said.

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He said by the Colorado constitution, the state has to have a balanced budget; no deficit spending.

Gaudet added that the ballot question does not define a ceiling on how much Amendment 69 can generate in tax revenue. He said some people refer to Amendment 69 as "Medicare for all," but there are no specifics in the bill.

"We don't know what we're getting for it," he said.

Gaudet said doctors wouldn't be drawn to the state. Even if the program does offer better rates than with private insurance, there will be fewer medical professionals to offer treatments. Gaudet admitted that the healthcare industry is a challenge. He also said there is no way to guarantee the outcome of the amendment. Amendment 69 requires the employee and employer to share 10 percent of the employee's income — 6.67 percent by the employer and 3.33 percent by the employee — to pay for health care. That would be paid in place of insurance premiums. The concern, according to Gaudet, is the tax revenue may not cover the costs, and it could lure people to Colorado just for the health care coverage.

"The reality is people come here for marijuana. Health care is much more expensive," Gaudet said. "I think it is unrealistic to think people won't move here for the health care."

Gaudet said if approved, Amendment 69 would be initiated with a lower tax, about 1 percent, to fund the board and administrative costs. ColoradoCares will be administered by a 21-member board. Board members are elected from districts across the state similar to senatorial districts.

According to ColoradoCare, the Colorado Department of Revenue would collect a transitional operating fund tax from residents beginning July 1, 2017 at a rate of .6 percent of payroll from employers, .3 percent of payroll from employees and .9 percent from non-payroll income. The ColoradoCare website goes on to say that a month prior to ColoradoCare's assumption of responsibility for health care payments, the Department of Revenue will cease collecting transitional operating fund taxes and begin collecting premium taxes at a rate of 6 ⅔ percent from an employer payroll, 3 ⅓ percent from the employee payroll and 10 percent of non-payroll income.

"I think we will see less small business starting," Gaudet said Wednesday.

For both taxes, much of Social Security and pension income would be exempt as defined by tax law, according to the website.

"The reality is some people will be paying less, at least at first," he said, "but will they get the services?"

Gaudet said ColoradoCares would cover residents who need care outside of Colorado, but at the rate negotiated within the state of Colorado. Costs above the negotiated rate will be the responsibility of the patient.

Gaudet said after hearing the presentation, many undecided voters are less likely to support Amendment 69. Part of the concern is the uncertainty in the product presented for the price, he said.

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